I had 100 K sitting at Capital One since 2017 generating minimal interest. I don't need this money, it was my peace of mind stash.
I am semi retired, working 2 days a week. No major bills other than household utilities and entertainment. I have more than adequate Traditional Retirement and Roth retirement money plus at least 3K per month in SS to live on at age 67. I am 63 now. Plan to stop work at age 65 and live off my non retirement savings and a small pension until age 67. I can use my Roth money as my emergency fund, if need be.
I decided to let go of the cash stash. This year, I used 20 K on a down payment on a car, and 5K on a vacation. With the 75 K left, I sent 50 K to Fido. I now have 100K just sitting in cash at Fido. My free advisor suggested I try a Separately Managed Account (SMA), invested in around 80 Equity High Dividend Stocks. He suggested this as a tax efficient way to own stock outright. They do the selecting, and they charge a 0.9% annual fee, no commissions to buy stock. Its a 100K minimum.
I'd like the money to grow. I hesitate because of this 0.9% fee. I own about 450K of other non retirement mutual funds. I don't know how to pick stocks. Has anyone ever had this type of SMA account and what are your thoughts? I know I will not like seeing the fee (.25% of .9) deducted every 3 months. Can I do just as well by buying 100K of ETFs in the same categories that the SMA? Alternately how would you invest this money in a set and forget it strategy for years? I don't want the Vanguard 3 Fund strategy, I already own that. Looking for Pros, Cons, and different Alternatives for the SMA.
I am semi retired, working 2 days a week. No major bills other than household utilities and entertainment. I have more than adequate Traditional Retirement and Roth retirement money plus at least 3K per month in SS to live on at age 67. I am 63 now. Plan to stop work at age 65 and live off my non retirement savings and a small pension until age 67. I can use my Roth money as my emergency fund, if need be.
I decided to let go of the cash stash. This year, I used 20 K on a down payment on a car, and 5K on a vacation. With the 75 K left, I sent 50 K to Fido. I now have 100K just sitting in cash at Fido. My free advisor suggested I try a Separately Managed Account (SMA), invested in around 80 Equity High Dividend Stocks. He suggested this as a tax efficient way to own stock outright. They do the selecting, and they charge a 0.9% annual fee, no commissions to buy stock. Its a 100K minimum.
I'd like the money to grow. I hesitate because of this 0.9% fee. I own about 450K of other non retirement mutual funds. I don't know how to pick stocks. Has anyone ever had this type of SMA account and what are your thoughts? I know I will not like seeing the fee (.25% of .9) deducted every 3 months. Can I do just as well by buying 100K of ETFs in the same categories that the SMA? Alternately how would you invest this money in a set and forget it strategy for years? I don't want the Vanguard 3 Fund strategy, I already own that. Looking for Pros, Cons, and different Alternatives for the SMA.